Benjamin Cher

SINGAPORE (Oct 3): The Singapore Exchange has reprimanded KLW Holdings over breaches of Catalist rules, as well as the company&rsquo s former managing director, Lee Boon Teck and group financial controller, Jaslin Gaw.

The regulator said KLW failed to announce a number of key developments, with Lee and Gaw facilitating the failure by not informing the board of directors of the facts.

Lee willfully made infractions against Catalist rules by failing to inform the board of significant amounts owed to KLW for development projects in Bali and Zhangye Gansu which were not recovered. He also did not announce the acquisition of shares in Key Bay Furniture immediately.

KLW too made infractions by failing to disclose a payment of $1.96 million to Lee without announcing it as an interested person transaction, failing to announce the use of the proceeds from a share placement in 2014, as well as the use of proceeds from a rights and warrants issue in 2014 and rights issue in 2013. KLW also failed to have robust and effective internal controls to address financial, operational and compliance risks.

Gaw breached Catalist rules when the company materially misstated $16.2 million paid for the development projects in Bali and Zhangye Gansu as well as the $1.96 million paid to Lee as part of its cash and bank balances in the 1H2014 financial announcement.

SGX has referred the case to the relevant authorities, and advises listed companies to consult the exchange before appointing Lee or Gaw as part of their management or board.

Shares of KLW last traded at 1 cent.